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\hypersetup{pdftitle={Scenarios for milk pricing in Europe },pdfauthor={Othman Alqaisi, Oghaiki Asaah Ndambi, Torsten Hemme},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Economic loss, milk price, milk quality},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\begin{center}
\Large{\textbf{Scenarios for milk pricing in Europe \footnote{\textbf{Contact Address:} Othman Alqaisi, University of Kiel, Institute of Animal Nutrition and Physiology, Kiel, Germany, \mbox{e-mail}: \email{othman_178@yahoo.com}}\\[0.8ex]}}
\normalsize{\textsc{Othman Alqaisi$^{1}$, Oghaiki Asaah Ndambi$^{2}$, Torsten Hemme$^{2}$}}
\end{center}
\begin{itemize*}
\item[]{\small{\textit{$^{1}$University of Kiel, Institute of Animal Nutrition and Physiology, Germany}}}
\item[]{\small{\textit{$^{2}$University of Kiel, Dept. Agricultural Economics, IFCN Dairy Research Center, Germany}}}
\end{itemize*}
\index[author]{Alqaisi, Othman}
\index[author]{Ndambi, Oghaiki Asaah}
\index[author]{Hemme, Torsten}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
Efficient production and profitability from high quality milk is the goal of most dairy farmers. Besides this it is highly desirable by dairy processors is to receive high quality raw milk, which is necessary to make valuable quality dairy products. Milk price and cost of milk production are important indicators for dairy profitability. Milk pricing in Europe is based on its quality and therefore there is a reduction in milk prices associated to poorer quality milk. Limited efforts have been made to quantify the economic loss associated to different qualities of milk. In this study, the bacterial cell count (BCC) and Somatic cell count (SCC) have been measured and used as indicators to quantify the reduction in milk price. 



Twelve farms from six countries (Germany, Netherlands, Switzerland, France, United Kingdom and Vietnam) were selected for this study. Data analysis was done using the TIPICAL (Technology Impact Policy Impact Calculations) model version 5.1 (Hemme et al, 2010) with an extension in the milk quality module. Milk was graded, and farm gate prices adjusted based on BCC and SCC.







The suggested scenarios show that milk prices could increase by 1.5\,\% when the BCC and SCC levels are $\lt$30,000 and $\lt$200,000 cells\,ml\textsuperscript{-1} respectively. To calculate the quantity reduced due to lower milk quality, we graded milk into eleven types based on BCC and SCC contents. At BCC and SCC levels of $\gt$200,000 and $\gt$500,000 respectively, the milk price is reduced by 2\,\%. The calculated loss from the suggested scenario was estimated at 255, 231 and 195 kg\,cow\textsuperscript{-1}\,year\textsuperscript{-1} at a SCC level of 50,000 cells\,ml\textsuperscript{-1} in Germany, the Netherlands and Switzerland respectively, with milk production of 8,500, 8,264 and 6,500 kg\,cow\textsuperscript{-1}\,year\textsuperscript{-1} respectively. While the loss was estimated at 117 kg\,cow\textsuperscript{-1}\,year\textsuperscript{-1} in the Vietnamese farm for a cow producing 3793 kg\,cow\textsuperscript{-1}\,year\textsuperscript{-1}. 



Milk price reduction associated with milk quality estimated at BCC level of 200,000 cells\,ml\textsuperscript{-1} were 0.54, 0.53, 0.70 and 0.40 US\$\,kg\textsuperscript{-1} ECM milk in Germany, Netherlands, Switzerland and Vietnam respectively. 



In general, reduction in milk prices resulting from higher SCC varied from 3 to 12\,\% as the SCC also ranged from 50,000 and 1,600,000. 



}

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\end{abstract}
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\noindent \textbf{Keywords:} Economic loss, milk price, milk quality
\index[key]{Economic!loss}
\index[key]{Milk price}
\index[key]{Milk quality}
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